Recently, President Trump's budget bill was passed by Congress and is now awaiting the president's signature. This event raises concerns in the crypto markets, particularly regarding Bitcoin.
Impact of the Bill on Liquidity
With the passage of the debt ceiling bill, the US Treasury will begin to refill its Treasury General Account by up to $500 billion. According to Arthur Hayes, co-founder of BitMEX, this could trigger a significant liquidity drain from financial markets.
Risks to Bitcoin Prices
Bitcoin is currently trading around $109,000, but the upcoming TGA refill and overall market caution may lead to a short-term price drop. Hayes predicts that prices could fall to $90,000-$95,000. This view is shared by many analysts who expect volatility due to fluctuations in the bond market.
Lack of Tax Reforms for Cryptos
One of the biggest disappointments for crypto enthusiasts was the absence of tax reforms for digital asset holders in the final version of the bill. Proposed amendments by senators like Cynthia Lummis were excluded, creating regulatory uncertainty for the market.
In conclusion, Trump's budget bill may temporarily negatively affect Bitcoin's price movement due to expected liquidity drain. However, long-term prospects remain optimistic if the market can adapt to the new conditions.
